A hard money loan is an asset-based loan through which a borrower receives funds secured by real property.

ResCap understands your business, loans up to 100% of 65% of ARV and will approve your loan in an expedient manner.

No. You can apply to be pre-approved based on your credit and financial statement – or – you can apply with a property under contract.

In order to qualify for a ResCap loan, you must have solid credit, adequate liquidity and experience in the fix-and-flip business.

No. We look to establish new relationships with seasoned fix-and-flip professionals.

ResCap requires proof that you have completed at least three successful fix-and-flip transactions or are working with an experienced partner / contractor.

We will supply you with a Proof of Funds Letter once you have been pre-qualified by ResCap.

ResCap orders the appraisal.

The approval of a loan usually takes 1 to 2 business days. Once approved, all we need is a valid appraisal, clear title and evidence of insurance to close the loan. On average, a loan that is submitted can fund within 14 days of being submitted to RCP.

The interest rate is 10%. ResCap charges a $700 appraisal and processing fee, a $1,000 application fee and an origination fee of 3 points upon repayment of the loan, which can be rolled into the loan.

A point refers to the origination fee charged by a lender in a real estate transaction with 1 point equaling 1% of the amount of the loan.

It means that you don’t have to come out of pocket to pay the points. We include them in your loan.

We charge interest on the funded note amount.

100% of 65% of After Repaired Value (ARV). We will consider properties over 65%, but you will need to make up the difference at closing.

After Repaired Value is the fair market value of the house after you have made the repairs to the home contemplated by your fix-and-flip business plan.

Once the appraisal is ordered, we confirm the ARV against the appraisal and take 65% of the appraised value of the home.

ResCap makes loans between $75,000 and $1,500,000.

We check your credit, financial strength and industry experience and provide you with a Proof of Funds letter.

9 months.

Contact us and we will send you a link to our online portal where you can apply for a loan.

Single family homes, duplexes, triplexes and quadplexes.

Yes. Prior to funding your fix-and-flip loan, we will send an appraiser to the property to verify the condition of the home. We also send inspectors to the property with each repair draw to confirm that the repairs have been completed in a workmanlike manner.

Yes. We require an insurance policy on each property for which we have an outstanding loan.

Provided you have clear title, a completed appraisal and insurance on the property, we can wire funds to you within 24 to 48 hours.

We wire closing proceeds directly to the title company or attorney. We wire repair draw reimbursement to the borrower’s bank account.

ResCap asks the borrower to submit the draw request after completing the work, at which time, ResCap sends an inspector to the property to verify that the work has been done in a workman like manner.

Yes.

Credit issues alone will not prevent a borrower from qualifying for a loan; however, the liquidity and experience of the borrower will need to be even stronger if there are credit issues to consider with the loan request.

Yes. ResCap will only make a loan to an LLC or other special purpose business entity (i.e.: partnership).

Yes. ResCap requires the loan closing to be completed at a title company or attorney’s office.

At closing, the borrower needs to bring money required to pay for title insurance and any other closing costs above 65% of ARV.

Yes. ResCap requires the borrower to submit the prior year’s tax return, the most recent pay stub and the most recent bank statements of the borrower (personal and business).

ResCap has lending affiliates in North Carolina, South Carolina, New Jersey, New York, Connecticut, Pennsylvania, and Texas. ResCap will be coming to Massachusetts, California, and Illinois soon.

No. Under no circumstances will ResCap consider construction financing.

ResCap will consider heavy rehab loans; however, the borrower will have to prove successful prior experience with a heavy rehab loan.

No. Under no circumstances will ResCap consider a land loan.

No. Under no circumstances will ResCap loan money to a borrower on their primary residence.

Yes. A hard money loan is an asset-based loan through which a borrower receives funds secured by real property.

Yes. To obtain more than one loan at a time, the borrower must have the financial strength and industry experience to be proven worthy of managing more than one fix-and-flip project at a time.

ResCap will consider a 90-day renewal for performing loans that need additional time to compete the repairs prior to sale.

Under special circumstances, ResCap will loan less than $75,000.

No.

No. There are no pre-payment penalties on a loan that is paid in full prior to the expiration of the term of the loan.